A tax residency or tax domicile certificate is issued for eligible individuals, companies, and government entities by the Federal tax Authority to avoid double taxation agreements on income signed by the UAE. There are many advantages of setting up a business in the UAE, and one such main advantage is obtaining a Tax residency or domicile certificate.
This certificate issued to a resident corporation operating in the nation, such as a company functioning on the mainland or a Free Zone company, allows the business to fully take advantage of the benefits like double taxation avoidance treaties.
However, this advantage does not apply to an Offshore Company or an International Business company. As a result, this type of company will not receive a Tax residency or Tax domicile Certificate. A tax residency or tax domicile certificate is issued for eligible individuals, companies, and government entities by the Federal tax Authority to avoid double taxation agreements on income signed by the UAE. There are many advantages of setting up a business in the UAE, and one such main advantage is obtaining a Tax residency or domicile certificate.
Tax Domicile Certificate:
A tax residency or tax domicile certificate is issued for eligible individuals, companies, and government entities by the Federal tax Authority to avoid double taxation agreements on income signed by the UAE.
Eligibility of Tax Domicile Certificate
Eligibility to obtain the certificate is
- Individual residing in UAE, for more than 12 months period.
- Companies having a track record of more than one year can get a tax residency or domicile certificate.
How to get a Tax domicile certificate in the UAE?
Apart from companies, individuals residing in the UAE can also obtain a tax residency or tax domicile certificate. The tax residency or tax domicile certificate acts as official verification of the tax residency of a person or a legal entity in the UAE.
The certification process depends on whether it is for a person or a company. The person or a company applying for the tax residency or tax domicile certificate must fulfill all conditions for eligibility.
Individual application
The requirements for a personal TRC are as follows:
- A copy of the valid passport of the applicant.
- The UAE residence visa and Emirates ID copy of the applicant.
- Bank statements of at least six months worth in the UAE
- Accurate proof of income in the UAE( a salary certificate, employment agreement, etc.)
- Tenancy agreement
- Immigration report
Application of a company
A company applying for the tax residency or tax domicile certificate must meet specific requirements. The company should verify if it is eligible to apply for the certification, as the authorities can reject the application.
Requirements for TRC of a company:
- A valid trade license copy of the company
- The tenancy agreement (valid for a minimum of three months before the application)
- A physical office space
- A copy of the company’s Director/Manager visa and Emirates ID & Valid passport copy
- The latest audited financial statement containing the company’s UAE bank statements for the last six months (must be stamped by the bank)
Different fee tariffs apply for both individual and company applications. After submitting the documents and the application to the Federal Tax Authority, they will proceed with the compliance procedure and issue the certificate within one week. For any further clarification or support , RVG can help you with that .Kindly reach us here.
